The ITO, Ward- 1, Jind v. Surjit Singh Nain
[Citation -2019-LL-0823-99]

Citation 2019-LL-0823-99
Appellant Name The ITO, Ward- 1, Jind
Respondent Name Surjit Singh Nain
Court ITAT-Chandigarh
Relevant Act Income-tax
Date of Order 23/08/2019
Assessment Year 2011-12
Judgment View Judgment
Keyword Tags retrospective application • low tax effect
Bot Summary: The Ld. Counsels appearing on behalf of the assessees vehemently opposed the contention of the Ld. CIT(DR) and 3 they were unanimous in their arguments that the Circular must be held to have retrospective application and must equally apply to the pending appeals as well, since the present Circular only modifies the monetary limit earlier mentioned in Circular No. 3 of 2018 dt. Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation. No appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit Further, even in the case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one 4 assessment year, no appeal shall be filed in respect of an assessment year or years in which the tax effect is less than the monetary limit In case where a composite order/ judgement involves more than one assessee. Having considered the rival submissions and having perused the material on record, we do not have slightest of hesitation in holding that the concession extended by the CBDT not only applies to the appeals to be filed in future but it is also equally applicable to the appeals pending for disposal as on now. As a step towards further management of litigation, it has been decided by the Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of the Circular mentioned above and accordingly, the table for monetary limits specified in Para 3 of the Circular shall read as follows: S.No. In view of the above discussions, we hereby hold that the relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8 th August 2019 shall be applicable to the pending appeals in addition to the appeals to be filed henceforth. As regards to appeal filed by the Assessee in ITA No. 172/Asr/2018 and C.O. No. 13/Chd/2018 the Ld. Counsels for the Assessees submitted that they have the instructions to withdraw the appeal / cross objection.


IN INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH B , CHANDIGARH (BEFORE: SHRI. N.K.SAINI, VP & SHRI , SANJAY GARG, JM ITA No. 596/Chd/2017 Assessment Year : 2011-12 ITO Sh. Surjit Singh Nain Ward-1, Jind S/o Sh. Tara Chand, Chootu Ram colony, Narwana Distt. Jind PAN NO: ARCPS1848P Appellant Respondent Cross Objection No. 13/Chd/2018 (In ITA No. 596/Chd/2017) Assessment Year : 2011-12 Sh. Surjit Singh Nain ITO S/o Sh. Tara Chand, Chootu Ram Ward-1, Jind colony, Narwana Distt. Jind PAN NO: ARCPS1848P Appellant Respondent ) Assessee by : Shri Vibhor Garg, CA (Revenue by : Shri Manjit Singh, CIT DR ITA No. 172/Asr/2018 Assessment Year : 2014-15 M/s Taj Travels Private Ltd. DCIT (Since amalgamated with M/s Metro Circle-2, Bathinda Eco Green Ltd.) SCO 54-55, Sector-9, Chandigarh PAN NO: AABCT5108J Appellant Respondent Assessee by : Shri Ashwani Kumar, CA (Revenue by : Shri Manjit Singh, CIT DR ITA No. 398/Chd/2018 Assessment Year : 2014-15 Dy. CIT M/s Taj Travels Pvt. Ltd. C-6(1), Mohali, Punjab Badal Road, Bathinda-Punjab PAN NO: AABCT5108J 2 Appellant Respondent Assessee by : Shri Ashwani Kumar, CA Revenue by : Shri Manjit Singh, CIT DR& Date of Hearing : 21/08/2019 ! & /Date of Pronouncement : 23/08/2019 Order PER N.K. SAINI, VICE PRESIDENT All above appeals filed by Department and cross objection filed by Assessee are arising out of separate orders passed by different CIT(A) as per details given below: Appeal Number & Assessment Date of CIT/ CIT(A) order Office of CIT/ CIT(A) Year ITA No. 596/Chd/2017 31/01/2017 CIT(A), Rohtak CO No. 13/Chd/2018 A.Y. 2011-12 ITA No. 172/ASR/2018 17/01/2018 CIT(A), Bathinda A.Y. 2014-15 ITA No. 398/Chd/2018 17/01/2018 CIT(A), Bathinda A.Y. 2014-15 2. During course of hearing it was common contention of Ld. Counsels present on behalf of different Assessees that these appeals filed by Department are not maintainable in view of Circular No. 17/2019 dt. 08/08/2019 issued by CBDT wherein monetary limit for filing appeals by Department before ITAT has been increased to Rs. 50,00,000/- from Rs. 20,00,000/-. 3. In rival submissions Ld. CIT DR submitted that Circular No. 17/2019 dt. 08/08/2019 is not clearly retrospective in as much as it specifically states in para 4 that said modification shall come into effect from date of issue of this Circular . It was stated that aforesaid sentence clearly gives impression that said Circular is applicable after date mentioned there in and thereafter departmental appeals which come in specified tax effect limit will not be filed. Ld. Counsels appearing on behalf of assessees vehemently opposed contention of Ld. CIT(DR) and 3 they were unanimous in their arguments that Circular must be held to have retrospective application and must equally apply to pending appeals as well, since present Circular only modifies monetary limit earlier mentioned in Circular No. 3 of 2018 dt. 11/07/2018. 4. We have considered submissions of both parties and carefully gone through material available on record. In present case it is admitted fact that CBDT vide Circular No. 17/2019 enhanced monetary limit to Rs. 50,00,000/- for not filing appeal by department before ITAT, earlier this limit was specified at Rs. 20,00,000/- in original Circular no. 03/2018 dt. 11/07/2018. Now vide new Circular no. 17/2019 dt. 08/08/2019 Tax Effect limit has been enhanced and this new Circular dt. 08/08/2019 read as under; Circular No. - 17 of 2019 Date - 8th August 2019 Further Enhancement of Monetary limits for filing of appeals by Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court - Amendment to Circular 3 of 2018 - Measures for reducing litigation. Circular No. 3/2018 dated 11th July 2018 has been replaced by Circular No. 17/2019 dated 8th August 2019 to enhance Monetary limits for filing of appeals by Department before Income Tax Appellate Tribunal, High Courts and SLPs/appeals before Supreme Court for reducing litigation. Appeals/SLPs in Income-tax Monetary Limit (Rs.) Monetary Limit (Rs.) matters [Previous Limit) (Revised Limit) Before Appellate Tribunal 20,00,000 50,00,000 Before High Court 50,00,000 1,00.00.000 Before Supreme Court 1,00,00,000 2.00.00,000 Assessing Officer shall calculate tax effect separately for every assessment year in respect of disputed issues in case of every assessee. If, in case of assessee, disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which tax effect in respect of disputed issues exceeds monetary limit. No appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit Further, even in case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one 4 assessment year, no appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit In case where composite order/ judgement involves more than one assessee. each assessee shall be dealt with separately. 5. From contents of aforesaid Circular it is crystal clear that anomaly in earlier Circular no. 3 of 2018 dt. 11/07/2018 at page 5 has been removed and limit specified in para 3 of earlier Circular has been enhanced. It is also not in dispute that earlier Circular was applicable retrospectively to pending appeals / cross objections and para nos. 12 & 13 of original Circular no. 03/2018 dt. 11/07/2018 read as under: 12. It is clarified that monetary limit of Rs. 20 lakhs for filing appeals before IT AT would apply equally to cross objections under section 253(4) of Act. Cross objections below this monetary limit, already filed, should be pursued for dismissal as withdrawn/ not pressed. Filing of cross objections below monetary limit may not be considered henceforth. Similarly, references to High Courts and SLPs/ appeals before Supreme Court below monetary limit of Rs. 50 lakhs and Rs. 1 Crore respectively should be pursued for dismissal as withdrawn/ not pressed. References before High Court and SLPs/ appeals below these limits may not be considered henceforth. 13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SCIHCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below specified tax limits in pare 3 above may be withdrawn/ not pressed. 6. Now CBDT simply enhanced monitory limit and directions given earlier vide para nos. 12 & 13 of Circular no. 3 / 2018 dt. 11/07/2018 are still intact which is crystal clear from language of Circular no. 17/2019 wherein it has been mentioned that there is enhancement of monetary limit and amendment to Circular no. 3 /2018 for reducing litigation. We therefore are of confirmed view that amended Circular No. 17/2019 now issued by CBDT is also applicable to pending appeals as has been specified in para 13 of original Circular no. 3/2018 dt. 11/07/2018 and that Department ought not have filed appeals before ITAT where tax effect is Rs. 50 Lacs or less. For aforesaid view we are also fortified by decision dt. 14/08/2019 of coordinate Bench i.e; ITAT, Ahmedabad Bench Ahemdabad in ITA No. 1398/Ahd/2004 for A.Y. 1998-99 in case of ITO, Ward-3(2) Ahmedabad Vs. Dinesh Madhavlal Pate, Ahmedabad & others wherein it has been held in para 5 to 7 as under: 5 5. Having considered rival submissions and having perused material on record, we do not have slightest of hesitation in holding that concession extended by CBDT not only applies to appeals to be filed in future but it is also equally applicable to appeals pending for disposal as on now. Our line of reasoning is this. circular dated 8 th August 2019 is not standalone circular. It is to be read in conjunction with CBDT circular no 3 of 2018 (and subsequent amendment thereto), and all it does is to replace paragraph nos. 3 and 5 of said circular. This is evident from following extracts from circular dated 8 th August 2019: 2. As step towards further management of litigation, it has been decided by Board that monetary limits for filing of appeals in income-tax cases be enhanced further through amendment in Para 3 of Circular mentioned above and accordingly, table for monetary limits specified in Para 3 of Circular shall read as follows: S.No. Appeals/SLPs in Income-tax matters Monetary Limit (Rs.) 1 Before Appellate Tribunal 50,00,000 2 Before High Court 1,00,00,000 3 Before Supreme Court 2,00,00,000 3. Further, with view to provide parity in filing of appeals in scenarios where separate order is passed by higher appellate authorities for each assessment year vis-a-vis where composite order for more than one assessment years is passed, para 5 of circular is substituted by following para: "5. Assessing Officer shall calculate tax effect separately for every assessment year in respect of disputed issues in case of every assessee. If in case of assessee, disputed issues arise in more than one assessment year, appeal can be filed in respect of such assessment year or years in which tax effect in respect of disputed issues exceeds monetary limit specified in para 3. No appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit specified in para 3. Further, even in case of composite order of any High Court or appellate authority which involves more than one assessment year and common issues in more than one assessment year no appeal shall be filed in respect of assessment year or years in which tax effect is less than monetary limit specified in para 3. In case where composite order/ judgement involves more than one assessee, each assessee shall be dealt with separately" 4. said modifications shall come into effect from date of issue of this Circular. 6. Clearly, all other portions of circular no. 3 of 2018 (supra) have remained intact. portion which has remained intact includes paragraph 13 of aforesaid circular which is as follows: 13. This Circular will apply to SLPs/ appeals/ cross objections/ references to be filed henceforth in SC/HCs/Tribunal and it shall also apply retrospectively to pending SLPs/ appeals/ cross objections/references. Pending appeals below specified tax limits in pare 3 above may be withdrawn/ not pressed. 6 7. In view of above discussions, we hereby hold that relaxation in monetary limits for departmental appeals, vide CBDT circular dated 8 th August 2019 (supra) shall be applicable to pending appeals in addition to appeals to be filed henceforth. 7. In view of aforesaid discussion all above appeals filed by Department are dismissed. 8. As regards to appeal filed by Assessee in ITA No. 172/Asr/2018 and C.O. No. 13/Chd/2018 Ld. Counsels for Assessees submitted that they have instructions to withdraw appeal / cross objection. 9. In view of that appeal of assessee in ITA No. 172/Asr/2018 and C.O. No. 13/Chd/2018 are dismissed as withdrawn. 10. In result, appeals of Revenue as well as cross objections of Assessee are dismissed. (Order pronounced in open Court on 23/08/2019 ) Sd/- Sd/- (SANJAY GARG ) ( N.K. SAINI) Judicial Member VICE PRESIDENT AG Date: 23/08/2019 Copy of order forwarded to : 1. Appellant 2. Respondent 3. // CIT 4. CIT(A) 5. - 4 , & 4 , 7 DR, ITAT, CHANDIGARH 6. Guard File By order, Assistant Registrar ITO, Ward- 1, Jind v. Surjit Singh Nain
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